Qatar's Economy Is Far More Active Today than in 2020

The 9th edition of the Euromoney Qatar Conference began on Sunday in Doha, under the patronage of Prime Minister and Minister of the Interior, HE Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani.

HE Sheikh Bandar bin Mohammed bin Saoud Al Thani, Governor of the Qatar Central Bank (QCB), stated during the opening ceremony that Qatar's economic activity is much stronger today than it was in 2020, as it holds a prominent position as one of the world's leading countries in the production and export of clean energy in the form of liquefied natural gas.

Sheikh Bandar stated that despite the economic challenges posed by the coronavirus (COVID-19) outbreak, the country's economy has shown strength and resilience as a result of the wise leadership's directives and the economic and financial support plan implemented to assist the sectors affected by the pandemic's containment measures.

He claimed that by taking a balanced approach and implementing public health measures and policies, the government was able to protect society from the pandemic's disastrous impacts, allowing for a smooth and safe return to regular life.

The governor emphasized that the Euromoney Conference poses significant problems for everyone today, as evidenced by proper future planning, as seen in the previous two years.

He emphasized that the existence of a flexible economy provides a strong foundation for future planning, as evidenced by data on the government budget and current account, the state's official reserves, and the financial sector's strength, in addition to economic diversification, pointing out that the prospects are still bright, as economic activity is recovering, driven by several factors, including the recovery in the domestic economy.

Sheikh Bandar went on to say that as global oil and gas prices rise, international institutions expect higher GDP growth in the range of 3.5 percent in 2022, while inflation levels appear to be relatively moderate in comparison to global rates, noting that current geopolitical tensions in Europe have had little impact on inflation levels, which have remained moderate.

Despite the minimal probability of the pandemic, he stated, "we must emphasise the importance of continuously monitoring the risks of supply chain disruptions."

According to the positive data achieved by the economy and the banking sector in particular, when evaluating the last stage, a decision was made to begin the phase of gradual exit from banking sector support measures, as a plan was drawn up to end the Central Bank's facilities provided to banks by the end of this year in conjunction with the interim assessment of the banks' situation, interest rates were also raised in line with the policy of maintaining the exchange.

He said that the expectation that oil prices will maintain their current average levels will assist the country's economic recovery in the near term, allowing Qatar to absorb the cycle of financial tightening that most central banks across the world have already undertaken.

He stated that the Qatar Central Bank is working on developing the regulatory framework in order to improve the digital society and advanced financial ecosystem.

He stated that in order to fulfill the growing payment needs of residents and visitors, the number of enterprises offering financial technology services has been raised in the experimental virtual environment prior to licensing, ensuring that the companies are more efficient and secure.